Hettich Corporation Uses an Activity-Based Costing System with the Following

question 61

Multiple Choice

Hettich Corporation uses an activity-based costing system with the following three activity cost pools: The Other activity cost pool is used to accumulate costs of idle capacity and organization-sustaining costs. The company has provided the following data concerning its costs: The distribution of resource consumption across activity cost pools is given below: The activity rate for the Order Processing activity cost pool is closest to:

• A)$1,400 per order
• B)$1,600 per order
• C)$1,150 per order
• D)$800 per order

---

Definitions:

Hip Bones

The large bones that form the base of the pelvis and articulate with the femur at the hip joints; these are comprised of three parts: ilium, ischium, and pubis.

Coccyx

The small, triangular bone at the base of the spinal column, consisting of three to five fused vertebrae, also known as the tailbone.

Interosseous Membrane

A fibrous sheet connecting the bones of the forearm (ulna and radius) or the leg (tibia and fibula), providing stability and a surface for muscle attachment.

Ligament

Fibrous connective tissue that connects bones to other bones, providing joint stability.